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The Fight Against Federal Student Aid Fraud

Oct 21, 2011

by Alexis Mattera

The Fight Against Federal Student Aid Fraud

Firefighters. Police. Ghostbusters. Your mom. There are certain people you instinctively contact when you need assistance and the same holds true for the federal government. When the Department of Education noticed there was something strange in the neighborhood regarding federal student aid, they knew just who to call.

Less than a month after releasing a report detailing how organized fraud rings were exploiting distance education programs, the ED contacted colleges across the country urging them to develop additional ways of identifying threats to federal funding. Schools were encouraged to combat potential fraud rings by monitoring groups of students using the same IP or email addresses to apply and participate in online programs, paying closer attention to students living outside the schools' normal coverage areas and delaying the disbursement of federal funds or releasing said funds in multiple disbursements. In addition to the steps colleges are taking internally, Secretary of Education Arne Duncan said the department will be working with Congress and schools "to ensure we have all the tools we need to prevent criminal elements from defrauding federal student aid dollars."

Do you think colleges are doing enough to prevent federal student aid fraud?

Going to college doesn't have to break the bank or saddle you with tens of thousands of dollars in student loan debt. Check out the Scholarships.com free college scholarship search where you’ll discover you qualify for hundreds of thousands of dollars in scholarships in just a few minutes, then apply and win! It’s that easy!

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Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



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